A wide variety of different types of payment transactions are performed on behalf of merchants and consumers, including electronic commerce (“eCommerce”) payment transactions performed via the Internet and point-of-sale transactions. In a typical eCommerce transaction, a consumer utilizes a consumer device (e.g., a personal computer) to access one or more merchant Web sites, and the consumer selects products to be purchased. During a checkout proceeding, the consumer provides payment account information, such as a credit card or debit card number, to a merchant system. The merchant system then generates a payment authorization request utilizing the payment account information, and the payment authorization request is communicated to a payment account issuer for processing.
Conventional eCommerce payment transactions are considered “card not present” (“CNP”) transactions because a physical payment device (e.g., a payment card) has not been read by the merchant. Accordingly, a higher level of risk may be attributed to the transactions, thereby leading to increased pricing and/or liability concerns. However, with the increasing use of new payment devices by consumers, such as transaction-enabled mobile devices, there is an opportunity for improved systems and methods that facilitate card present eCommerce transactions.
A purchase transaction at a point-of-sale (“POS”) typically involves the provision of payment information from a consumer payment device to a merchant terminal. For example, a consumer payment card is typically swiped by a merchant in order to read magnetic stripe information from the card. With the increasing use of new types of payment devices, such as contactless smart card or a near field communication (“NFC”) mobile device, a merchant can use a contactless reader to collect payment account information from a payment device. Accordingly, there is an opportunity for improved systems and methods for facilitating transactions at a merchant point of sale.